Domestic niche instant noodles, in the crack to survive
Photo @ vision China | brocade carp financial thought of in those days, the “father” of instant noodles tadao ando buford in 10 square meters of wigwam, invented the instant noodles, after, kang teacher, unity, huafeng, white elephants into the track, usher in a golden age of instant noodles market in China.Now the market is finally changing.As the new era of consumption, Z generation young people became the main force of the fast food consumption, according to the fast food products has become a young People’s Daily, the birth of a new instant noodle brand began to many and power, to cater to the be fond of of young people, with the help of a new wave of consumption of dividends, take off the “Fried” label, become the new members of the track fast food products.This has enabled the rapid rise of domestic niche instant noodles, which has been in a state of ups and downs, and the situation of confrontation between Master Kong and Uni-President is changing.But can the popularity of niche instant noodles really save the dying instant noodle industry?It’s worth thinking about.Domestic niche instant noodle attack?There are countless domestic niche instant noodles, among which Baixiang’s “spicy spicy pot beef noodles”, Wugudaochang’s “Tomato beef brisket noodles” and Baijia’s “Ah Kuan” are all frequently listed.Ogok Is known for its slogan, “I don’t eat fried food. Non-fried food is healthier.” Ogok pioneered non-fried instant noodles and posted annual sales of 2 billion won at its peak.At a time when the public criticized instant noodles as unhealthy, Wugu Dojo came up with the title of “non-fried”, making the instant noodle market no longer limited to traditional production and more consumers choose healthier convenience food.Also very ones and wide, o “crispy Fried chicken” check according to the enterprise, according to White House food completed June 20 years nearly $200 million B round of funding, and for several years during the double 11 to promote online channel sales, and a number of indicators to cut in the top list, including the wide product range year-on-year growth of 200%, after purchase rate in first.According to the financial report of Baijia, from 2018 to 2020 and the first half of 2021, the company’s operating income was 422 million yuan, 631 million yuan, 1.110 billion yuan, 593 million yuan respectively, with a substantial increase in operating income.In addition, the annual compound growth rate from 2018 to 2020 reached 62%, and the net profit returned to the parent company increased by an astonishing 12 times in two years.However, compared with Uni-President and Master Kong, which are backed by Japanese holdings, the development of domestic niche instant noodles has been hindered, showing twists and turns.Ting Hsin Holdings Ltd. and Sanyo Food Co. Ltd. hold 36% and 33% of Tingyi, respectively, while Uni-President and Tingyi hold more than 60% of the Chinese stock, according to data.Back then, Uni-President, Master Kong, White Elephant and Huafeng were the four biggest brands in the domestic instant noodle industry.Subsequently, the market share of White Elephant began to decrease year by year, gradually separated from the other three giants, until finally it completely lost its voice in the industry.There are many reasons for this result, among which the rejection of Japanese acquisitions became the fuse, followed by five years of restructuring and internal strife in the industry, finally let the white elephant lost his voice.Yao Zhongliang, chairman of Bai Xiang Instant noodles, said that if it had not been for five years, Bai Xiang would have far exceeded its current annual sales of 4 billion yuan.Meanwhile, wugudao was forced to resell to CoFCO at a low price due to its wrong decision on expansion, hoping for a chance of survival, but eventually it was resold to Keming Noodles and disappeared from public view.While the old brand is dying out, it has opened up a niche market for instant noodles.At present, domestic niche brands are developing rapidly and occupy a certain share in the instant noodle market. Young people who like to try new things are obviously more interested in innovative and innovative instant noodles.When it comes to instant noodles, apart from Master Kong, Uni-President and Jinmailang, it is hard to think of any other brands. The reason for this phenomenon is that these two instant noodle brands have a large market share.In 2020, Master Kong ranked first in China’s instant noodle market with 43.2 percent, followed by Uni-President with 14.7 percent, according to data disclosed by Zhiyan Consulting.As can be seen from the financial statements of the two enterprises, the instant noodle business revenue of Master Kong in 2020 was 29.51 billion yuan, with a year-on-year growth of 16.64%.Consolidated revenue was 9.055 billion yuan, up 7.2% year on year.Compared with the revenue of baijia Kuan in 2020 of 1.110 billion, Master Kong is 27 times, which is not a small gap.From the perspective of baijia Kuan’s net profit, from 2018 to 2020 and the first half of 2021, it is 6,084,800 yuan, 23.648,500 yuan, 76.264,900 yuan and 21.29,400 yuan respectively.It is obvious that the company’s main business gross margin presents a downward trend, in fact, this is not unrelated to its marketing model.For example, the expansion of new channels such as Ah Kuan Food e-commerce and customization need to spend more on promotion service fees and advertising costs.But it also made Hiro’s red-oil noodles completely popular, with a total of 50 million views and more than 1 million comments on videos related to Hiro’s spicy eating.Attention once occupied the first place on sina Weibo’s Bomei Food ranking list;TOP10 “B station” topic list……In addition to the high marketing cost resulting in a decline in gross profit, domestic niche instant noodles only rely on online marketing mode, in fact, it is difficult to completely open the instant noodle market, after all, supermarket, convenience stores and other has been the main battlefield of the fast food industry.However, it is difficult to see domestic niche instant noodles in offline retail stores, and traditional instant noodle brands are basically monopolized on commodity shelves. It can be said that domestic niche instant noodles without offline track are difficult to turn over.In general, the recognition of traditional brands is relatively high.The influence of the brand needs time to settle. The domestic minority instant noodles are still young, and the preferences of young people cannot be unified, so it is difficult to replicate the height achieved by Master Kong and President.Secondly, although the sales of domestic instant noodles have soared due to live streaming, the popularity of “wild consumption” is bound to diminish rapidly with the downfall of several leading anchors such as Viya and Shirley.Although each brand has been transforming the flow of “wild consumption” into “sustained consumption”, it is obviously more difficult to achieve without the support of live broadcast.After all, in 2020, the annual sales of the product series were about 400 million yuan, with more than 100 million units sold in total, and about 16 million orders were placed online during the “Singles’ Day” in 2020.Moreover, niche instant noodles set off the trend of “high-end” instant noodles, such as ramen said, jin Noodle hall and other new brands, the average price reached 20 yuan, and sales growth year by year, the best sales ramen said in 2020 wal-mart single store daily sales of 25,000 packages, annual sales reached 900 million yuan.But then traditional brands launched several high-priced instant noodles to break into the high-end market, and established companies backed them up and quickly grabbed some market share.But cheap noodles are the way to go, which has given Rise to an explosion in sales of instant noodles today. As early as 19, Instant noodles in a barrel and a half/a bag and a half claimed to have sold more than 5 billion servings in five years, meaning that 32 servings of instant noodles are sold every second.Obviously, the market for low-cost instant noodles is broader, and the price is still the advantage of traditional instant noodles, while the price of niche instant noodles is not cheaper than traditional instant noodles, but some brands are several times more expensive.In the fierce competition, the development of domestic niche instant noodles is still rapid, but compared with traditional brands, its marketing channels and prices are not dominant, in a short time to create the next “Master Kong” is still very difficult.Instant noodle market, a sunset industry?Sudden outbreak of the epidemic catalyzed “home economy”, convenience food sales blowout.In addition to instant noodles, self-heated hot pot, snail noodles, hot and sour noodles and other new convenience food also become a new outlet, emerging enterprises and capital continue to influx, new convenience food track was set off, the fast food industry ushered in a new spring.There is no doubt that the instant noodle industry is still the backbone of the fast food circuit, but with the rise of the whole fast food industry, to a large extent, the impact.The turning point of the precipitous decline in instant noodle production came in 2018, when it dropped by 4.037 million tons in just one year, down 35 percent year-on-year.After timely strategic adjustments, the rate of decline slowed down to 18.04% in 2019 and only 12.61% in 2020 due to the impact of the epidemic.This is directly related to the demand of users. According to data, the demand for instant noodles has been declining since 2018. In 2019, the demand for instant noodles was 5.3741 million tons, a decrease of 1.2628 million tons and 19.03% compared with 2018.In fact, the main reason for the decline of user demand lies in the continuous change of various homogeneous brands, consumers have a wider range of choices, so that the flow is gradually dispersed.In addition, instant noodles are not a necessity in China. Although instant noodles account for nearly half of global sales, Korea, Vietnam and Nepal are the top three countries in terms of per capita consumption of instant noodles in 2020, with Korea topping 79.7 servings.In this situation, various types of instant food products flock to luosifen, among which luosifen has become the “xiangbobo”. In 2020, the number of enterprises registered with luosifen reached 6,736, 68.85% higher than last year. In the first quarter of 2021, the number of newly registered enterprises with Luosifen reached 2,422, more than one third of the whole year of last year.It is conceivable that the popularity of snail noodles continues to rise.With the high quality development of convenience food, consumers are no longer satisfied with simple instant noodles, healthy and nutritious convenient instant food products have become a new demand of the public, convenience food is not so “convenient”.Of course, in addition to the ever-changing needs of consumers, the rise of the takeout industry has also dealt a fatal blow to the instant noodle industry.The essence of the rapid development of the fast food industry is the same, in the era of “home economy”, the fast food industry and the takeout industry have given young people more fresh choices.Although the emergence of domestic niche instant noodles has added fresh blood to the instant noodle industry, it will not change the trend of gradual decline in production of the entire industry.Although the market of convenient instant food industry is expanding, the rapid development of new instant food products has impacted the sales of instant noodles, and the rise of domestic niche instant noodles just shows that the transformation of traditional industry is imminent, catering to the needs of young people to gain market share.